Share Repurchase Program Approved by PepsiCo (NASDAQ:PEP) Board

PepsiCo (NASDAQ:PEP) announced that its Board of Directors has approved a share repurchase plan on Tuesday, February 3rd, RTT News reports. The company plans to repurchase $10.00 billion in shares. This repurchase authorization allows the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $167.53 on Friday. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.72 and a current ratio of 0.85. PepsiCo has a one year low of $127.60 and a one year high of $168.01. The firm has a market capitalization of $228.95 billion, a P/E ratio of 27.92, a PEG ratio of 5.43 and a beta of 0.40. The company’s fifty day moving average is $147.22 and its two-hundred day moving average is $146.10.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings data on Tuesday, February 3rd. The company reported $2.26 EPS for the quarter, beating the consensus estimate of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The firm had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion. During the same quarter last year, the business earned $1.96 earnings per share. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Analysts forecast that PepsiCo will post 8.3 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be issued a dividend of $1.4225 per share. The ex-dividend date of this dividend is Friday, March 6th. This represents a $5.69 annualized dividend and a yield of 3.4%. PepsiCo’s payout ratio is currently 94.83%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on PEP. Wells Fargo & Company raised their price target on PepsiCo from $154.00 to $165.00 and gave the stock an “equal weight” rating in a report on Wednesday. Morgan Stanley lifted their target price on PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a research note on Wednesday. BNP Paribas Exane set a $191.00 price target on PepsiCo in a research note on Wednesday. Citigroup lifted their price objective on shares of PepsiCo from $170.00 to $182.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, DZ Bank upgraded shares of PepsiCo from a “hold” rating to a “buy” rating and set a $167.00 price objective for the company in a research report on Tuesday, October 21st. Nine investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $167.28.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 beat and reiterated guidance — PepsiCo topped EPS and revenue estimates for Q4 and kept FY2026 guidance intact, which underpins investor confidence in near-term results. Read More.
• Positive Sentiment: Analyst upgrades and higher price targets — A number of banks raised targets and/or ratings after the quarter (notable raises: UBS to $190, Morgan Stanley to $180, JPMorgan to $176, HSBC to $175), signaling improved sell?side sentiment. Read More.
• Positive Sentiment: Large $10B buyback approved — Board authorized $10 billion in repurchases (?4.7% of shares), which supports EPS and signals management confidence in valuation. Read More.
• Positive Sentiment: Dividend increase — Quarterly dividend raised to $1.4225 (5% YoY), keeping Pepsi in the Dividend Kings camp and attractive to income investors. Read More.
• Positive Sentiment: Productivity/efficiency tailwinds — Management is leaning on automation, distribution integration and SKU rationalization to offset inflation and expand margins, which analysts and outlets flag as a catalyst for EPS expansion. Read More.
• Neutral Sentiment: Strategic repositioning highlighted — MarketBeat and others note Pepsi is focusing on top brands, health-oriented SKUs and distribution tests (no full refranchising). These are longer-term actions that support the thesis but require execution. Read More.
• Negative Sentiment: Snack price cuts / consumer backlash — Pepsi will cut prices on certain US snacks (reports cite up to 15%) to drive volumes; this is framed as a “price investment” but risks near-term margin dilution and has drawn critical press and analyst scrutiny. Read More.
• Negative Sentiment: Bearish commentary on margin trade-off — Some analysts/commentators argue recent multiple expansion prices in a recovery that may require trading margin certainty for volume growth, raising execution risk for new buyers. Read More.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.